Trade financing

Safe and reliable trade financing

In executing a commercial transaction, the price, quality, knowledge, delivery term and after sales services are not the only elements that are essential. What is also extremely important is how it’s going to be financed. You can choose from various forms of financing and associated products that provide a safe way to do business on the local and the foreign markets.

Domestic and foreign companies can sell their accounts receivable that are not yet due to us in exchange for cash immediately instead of after the agreed payment deadline.

Why choose factoring

Immediate liquidity for the company (seller of the receivable).
The seller of the receivable can offer their buyer better payment terms without this affecting their liquidity.
The seller of the receivable can avoid the risk of non-payment by a particular customer or country, in some cases even currency risk.
It improves the balance of receivables in the balance sheet, resulting in a better credit rating for the seller of the receivables and the possibility of borrowing under more favourable terms in the future.

The form of financing (credit given directly to a foreign buyer or foreign bank for the final buyer) where UniCredit Bank finances a foreign importer that pays a Slovenian exporter or provider of services abroad for the delivery of goods or services is called credit to a foreign buyer.

This form of financing is used to fund major and complex medium- and long-term transactions secured with a policy of the Slovenian Export Corporation.

Credit to foreign buyer

This gives Slovenian exporters a strategic advantage in that they can offer their foreign buyers an alternative form of financing that may be unavailable to them, or too expensive, in their country.
By actively involving our bank, exporters can avoid numerous risks: commercial, political, exchange rate and general contractual risks.
Our service for importers and exporters is properly organised in terms of interbank dealings and transparency.
Crediting can be provided for shorter or longer periods and up to 85% of the transaction value.
The cost of crediting is reduced if the liabilities are secured with a policy of the Slovenian Export Corporation.

Pre-export financing

UniCredit Bank offers exporters credits to ensure delivery, which can also be repaid by the buyer.

Pre-export financing guarantees the payment of successive deliveries before the actual export of goods. It includes financing the purchase of raw materials and other materials, delivery of goods, manufacturing process and other costs associated with export.

Letter of credit post-financing

In letter of credit post-financing, UniCredit Bank approves a deferral of payment by letter of credit to the foreign bank that opened the letter of credit, usually for a period of 180 days or more if necessary.

In this form of financing, banks are in a credit relationship related to the export of Slovenian companies onto foreign markets.
By using a documentary letter of credit for payment, Slovenian exporters can ensure to their buyers a longer deferral of payment via our bank, thereby gaining a strategic market advantage.
UniCredit Bank can also provide confirmation for the letter of credit for the period before it is paid, allowing exporters to avoid the risk of non-payment by foreign banks.
UniCredit Bank can offer to the foreign bank, and thereby the foreign buyer, a favourable source of credit.
Our service for importers and exporters is properly organised in terms of interbank dealings and transparency.

Supplier finance

Supplier finance or supply chain finance (SCF) is a model of financing that offers numerous benefits for the buyer and the suppliers as well. It is an innovative approach for a supplier to finance their working capital without requiring approval as in standard financing, especially in cases where the supplier is unable to acquire financing.

Benefits for the buyer:

Improved supplier relations (lower risk associated with the regular deliveries of suppliers)

Suppliers’ payment deadlines can be extended

Increased liquidity

Lower external debt (supplier finance is not additional borrowing)

Reduced payment transaction costs (the buyer only needs to pay their bank, not their suppliers with accounts at various banks).

Benefits for the supplier:

Increased liquidity

Their receivables are paid early

Reduced costs of financing

Better management of receivables, which they can sell to the bank anytime, thereby improving their financial indicators

Lower indebtedness

For foreign or domestic transactions, we offer the possibility of using alternative forms of payment or claim security instruments, such as documentary collection and documentary letter of credit.

Our instruments

For the seller (exporter), ensuring that the payment is on time is essential, while the buyer (importer) primarily needs the goods ordered to be delivered on time and in compliance with the contract. To ensure the two interests are protected on both sides and to avoid risks, UniCredit Bank offers two main payment instruments.

Find out more here.

Companies face various risks associated with dealings on the domestic and the foreign markets.

When to use a bank guarantee

Guarantees are used as a security instrument and are an irrevocable undertaking of the bank to pay any sum upon first call of the beneficiary and at the presentation of a Guarantee Call Request and any additional documents if such is listed in the guarantee within the guarantee’s term of validity, up to the maximum guaranteed amount if the principal does not meet the contractual obligations.

Bank guarantees are a reliable instrument for hedging against various business risks.

Find out more here.